Top 5 Best Work Benefit Trends for 2017
ACI Founder and CEO Dr. Ann D. Clark is a regular contributor to BenefitsPRO. See Dr. Clark’s recent article below, originally published on BenefitsPRO.
Becoming a best place to work is paying off big for today’s winning companies. Take Netflix for example, which recently announced a 56 percent profit growth and a rapidly increasing global customer base that reaches 93.8 billion — beating subscriber projections by 36 percent.
Frequently topping the best place to work charts, Netflix famously offered unlimited vacation to employees back in 2004 and has since expanded paid parental leave to a full year after a child is born or adopted. When announcing this new benefit policy, Netflix Chief Talent Officer Tawni Cranz shared, “Netflix’s continued success hinges on us competing for and keeping the most talented individuals in their field. Experience shows people perform better at work when they’re not worrying about home.”
Like Netflix, more and more businesses are investing in best place to work benefits and perks that attract and retain top talent, strengthen workplace culture and engage diverse employee populations. These companies are also experiencing strong returns. In an independent analysis of the financial performance of the “100 Best” companies, data reveals best places to work perform two times better than the general marketplace and provide three times the return. Best companies also experience half the voluntary turnover of industry competitors.
Employee expectations and new workforce trends are changing the way companies do business. Today’s multigenerational, tech-savvy and socially-motivated employees want to work for companies rooted in a strong purpose and mission with a thriving culture.
The new workforce is also more interested in benefits and perks than ever before. In fact, Glassdoor data reveals 4 out of 5 employees prefer new benefits over a pay raise, and nearly 3 in 5 people say that benefits and perks are among their top considerations before accepting a job.
Brokers and advisors can add value by providing strategic consultation to help clients across all industries become best places to work. While trendy perks like nap pods and surf breaks are certainly buzzworthy, the real transformative benefits fall into the following top trends for 2017.
1. People-first initiatives are winning
Having the most family-friendly benefits is the latest arms race among employers.
With Silicon Valley tech giants Netflix, Microsoft, and Amazon proudly expanding paid parental leave coverage, companies across all business sectors are adopting more generous family policies and benefit offerings.
American Express announced an increase in paid parental leave to five months with added surrogacy and IVF benefits, and Ernst & Young expanded parental leave from three to four months for parents of all genders and added adoption, fertility and surrogacy benefits.
And when it comes to family benefits, inclusion is a top priority. Companies with expanded parental leave are extending these same benefits to any employee taking care of loved ones, including those caring for sick parents.
In the coming year, brokers and advisors can expect to continue to see more generous parental leave, as well as people-first initiatives beyond family benefits.
For example, more generous vacation policies with additional time off for travel, volunteering and anniversaries have become the norm among top companies.
2. Modern flexibility and convenience replaces traditional work-life balance
Work-life balance, at least in the traditional sense of the term, is dead. To meet the changing demands of today’s 24/7-connected world, employers are offering more flexible work schedules, remote work options, reduced meetings, reduced workweek hours, and benefits that provide modern convenience.
In a study of the new workforce, PwC surveyed more than 40,000 people of different generations, career stages and cultural backgrounds and found that if they were able to make their current job more flexible, 64 percent of millennials would like to occasionally work from home, and 66 percent of millennials would like to shift their work hours.
Additionally, 15 percent of male employees and 21 percent of female employees say they would give up some of their pay and slow the pace of promotion in exchange for working fewer hours.
From flexible arrangements to errand running, personal concierge programs and onsite car wash, benefits that provide modern convenience, reduce stress and improve quality of life are important for today’s best places to work, especially in high-stress industries like technology, law, finance, and healthcare.
Brokers and advisors can evaluate a variety of benefit offerings to help clients cultivate a more engaged and successful workforce in today’s competitive global market.
3. Values-driven benefits create a unique culture
While many leaders are investing in “happiness” at the workplace, it seems like the number one value employees crave more than anything else is actually “freedom.” In a 2014 report by UBS Investor Watch, analysts found that millennials regard “having a happy family,” “having financial freedom,” and “living a full life with a wide variety of experiences,” as the top definitions of success.
Today’s employees are looking for workplaces that demonstrate a shared commitment to these values and personal definitions of success. Leading e-commerce company Boxed made headlines by offering to pay college tuition for all employees’ children, and contributing $20,000 toward employees’ weddings.
While not every company can offer such generous financial support, there are plenty of benefit programs and perks that can help employees alleviate major stressors and achieve a more meaningful, fulfilling and successful life.
With an understanding of workforce needs, challenges and personal goals, consultants and advisors can partner with clients to build values-driven benefit programs and initiatives that make a dramatic impact on job satisfaction and performance.
Personal concierge referrals, student loan support, and errand running are all benefits that truly liberate, give back valuable time, reduce stress, and make life easier. Benefit programs that resonate with values will foster a more grateful, supportive, engaged and inspired workplace culture.
4. Total well-being is the new wellness
With millennials reporting depression in higher numbers than any previous generation and mounting evidence that stress and depression are linked to major physical health risks, companies are looking beyond traditional insurance to expand total well-being benefits and improve employee health.
Many best places to work offer a variety of creative health benefits including meditation rooms, organic meal preparation by professional chefs, chair massages, and in-house yoga.
Additionally, a strong employee assistance program (EAP) with total emotional wellness benefits, financial wellness support and an intuitive, seamless user experience is an effective way to help ensure that clients’ employees thrive.
5. Career coaching and advancement is still a top priority
No matter how great the game room and retirement plan are, employees will not stay with a company very long without a clear path for advancement. Professional development courses, interoffice exchange programs, a diverse C-suite and continuing education initiatives not only give employees the tools for advancement, but also help the company succeed.
By providing consultation around benefits that offer training, skilling and career coaching, brokers and advisors can help clients determine which programs will effectively support long-term growth strategies.
If there is one thing to be learned from 2016, it is people want to know that they matter. HR leaders who invest in people-first policies will see the strongest ‘return-on-individual’ through improved engagement and retention.
New benefits and perks that speak to modern workforce needs — like errand running, financial wellness, life coaching, and all-inclusive caretaking support — will become strong tools for retention and engagement in 2017.
High-quality EAPs and corporate concierge programs can address any major gaps in benefits for the new workforce and support best place to work initiatives for any company.
Brokers and advisors who can provide strategic insight for winning workforce initiatives will strengthen partnerships with key customers and build a long-lasting foundation for success.